Jessica Murphy, Parliamentary Bureau

OTTAWA - United Nations fact-finder James Anaya says Canada "faces a crisis" when it comes to the situation of aboriginal communities.

But Anaya still had praise for federal and provincial initiatives geared towards addressing some of the chronic issues facing Canada's indigenous population.

"But despite positive steps, daunting challenges remain," the UN special rapporteur on the Rights of Indigenous Peoples said Tuesday after a nine-day, six-province whirlwind inspection.

The relationship is marred by the deep distrust many aboriginals hold with regards to government, Anaya said - something he believes both sides need to address.

"What the aboriginal people need is a genuine coming together with government in order to build trust," he said.

And he said many steps taken to address issues of poverty, housing, and land claims were insufficient.

Anaya's first-blush recommendations included a call to extend the five-year mandate of the Truth and Reconciliation Commission, to launch a national inquiry into murdered and missing aboriginal women, and to expand consultation on the First Nations Education Act being developed by Ottawa.

The Conservative government has balked at similar recommendation in the past.

Anaya said his advice is based on "sound human rights foundations" and that governments and First Nations, Metis and Inuit groups at least agree steps need to be taken to address the longstanding problems.

"That's the starting point - there's agreement on this," he said.

"What's being discussed is what is the best path forward. And I'm saying the path forward needs to be defined with the participation of aboriginal peoples concerned. If that doesn't happen, the path forward is going to be a rocky one."

He also urged governments, industry and aboriginal leadership to sit down together to tackle sticking points on natural resource development.

"There needs to be further dialogue with regard to the pipeline issue," he said.

The federal government is trying to get British Columbia First Nations on side for key energy infrastructure projects, including the Kinder Morgan and Northern Gateway pipelines, but is facing fierce opposition.

Aboriginal Affairs Minister Bernard Valcourt said in a statement Tuesday that Anaya's comments "encourage us to continue working hard to achieve results. We look forward to the Rapporteur's final report and recommendations and look forward to recommendations that will help us complete the goal of reconciliation."

His report will be presented to the UN Human Rights Council next fall.

Anaya's visit comes after a raucous few months last winter between aboriginal leaders and the feds, spurred by the Idle No More movement and Attawapiskat Chief Theresa Spence's liquid diet protest.